Newcastle Intermediaries has changed its mortgage lending criteria in order to provide increased options to support contract workers and those lending into retirement.
The enhanced policy will now consider early career teachers into their second year, 100% of nurse bank workers’ income subject to a two-year track record of P60s, and junior doctors in Foundation Year 2 onwards.
Newcastle Intermediaries will also consider day rate contractors with a minimum of one month remaining on their current contract – previously three months – and 12 months’ contracting experience, and zero hour workers subject to a two-year track record in the same industry.
The lender also increased what it considers as retirement age from the state pension age to 70 years old.
For applications with more than 10 years from age 70 at the time of application, Newcastle Intermediaries will determine affordability based on earned income, with evidence of pension contributions in the past 12 months.
For mortgages with less than 10 years remaining until age 70, affordability calculations will be based on the client’s ‘plan B’ – if this includes pension income, the lender will require proof of their current pension projections or evidence of an alternative.
Newcastle Intermediaries’ later life proposition supports borrowers up to age 80 at the end of term, with a maximum term of 40-years.
The lender also reduced rates across its product range by up to 0.45%.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “Some really positive criteria and rate changes from Newcastle BS, to further align it with competitors.
“Affordability remains a key topic of discussion with mortgage holder and perspective first time buyers and these changes help bridge the gap.
“We’ve seen in recent months many lenders amend their on what they consider as retirement age, beyond state pension age.”
